Demurrage
Also known as: Container Demurrage, Port Storage Fee
Definition
Demurrage is a penalty fee for leaving containers at a port, rail terminal, or container yard longer than the allotted free time. It encourages importers to pick up cargo promptly and keeps terminals from becoming storage facilities.
Demurrage vs. Detention
| Demurrage | Detention |
|---|---|
| Container at terminal | Container at customer site |
| Port/rail yard storage | Extended use of equipment |
| Before pickup | After pickup |
Both are time-based fees—demurrage for port delays, detention for holding equipment too long.
Free Time
Carriers typically allow:
- Import: 3-5 free days at port
- Export: 3-7 free days
- Varies by port and carrier
Demurrage Rates
| Day | Typical Daily Rate |
|---|---|
| Days 1-5 | $75-150 |
| Days 6-10 | $150-250 |
| Days 11+ | $250-400+ |
Rates escalate the longer containers sit.
Avoiding Demurrage
- Track vessel arrivals closely
- Pre-clear customs before arrival
- Arrange drayage in advance
- Negotiate extended free time
- Use off-dock container yards
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